Selling your home in divorce in Colorado is definitely not something that anyone is looking forward to, but it’s a reality that many home owners find themselves faced with each year, so don’t worry you aren’t alone. It’s critical that you take the time to research this process so that you can understand the exact steps that must be taken in order to sell your home quickly at the maximum price. We have created this step by step guide in order to assist you with this process, and shed some light on a subject that you may not want to face, but the reality is clear and you must now deal with it. We buy houses in El Paso County Colorado fast, and in as little as 7 days…so if you need to sell now then please contact us and we will present you with a cash offer in under 24 hours.
If both partners have agreed to sell the house, and no deal has been made for one of the partners to buy the other out, the following rules will apply:
- The first mortgage will always be paid first.
- Then, any liens or second mortgages will be paid.
- Any real estate commissions, escrow fees, concessions, etc.. will then be taken out of the proceeds. (Unless you decide to go with a cash house buying company.)
- Capital Gains tax will be assessed based on the total profit, not sales price.
Some Action Items To Take:
- Find the loan balance, including loan account number
- List the problems in the home
- Find out if you’d like to sell “As-Is”
- If you’re not selling as is, figure out exactly how you’re going to pay for repairs.
- Agree on a selling price with spouse. If one cannot be determined, you may have to get an appraisal.
- Overpricing a home will end up costing you money. Do not overprice.
- If selling “As-Is” get an offer from a house buying service. If you’ve decided on a conventional sale with an agent, decide on the agent to use.
Who Retains Ownership Of The House In Divorce?
The very first thing that you must determine when you are selling your house in divorce is who will retain ownership over the deed of the property. You will also have to decide whether or not you want to sell the home to a third party, such as us, who will pay cash for the home that you and your spouse can then divide up among yourselves and then continue going about your daily lives.
Colorado is a community property state…
In Colorado, the agreement is that any home acquired during a marriage is owned by both spouses, unless it was the product of one spouses inheritance from another family member, in which case that partner would retain ownership over the home. Otherwise, the value of the property would be divided equally between the two parties.
Once in awhile you may run into a situation where the title is only in one spouses name. This must be looked at as that spouses sole piece of property, because that is the way the law looks at it, and we would be smart to stay within the judicial perspective here. But even still, it can still be overturned if both parties have an understanding that they both were true owners of the property, even though both of their names weren’t on the actual title. Sometimes these situations can be tricky, and it can be tough to prove ownership of the one spouse whose name does not appear on the actual title for the home.
Some Strategies For Who Keeps the House In Divorce…
As previously mentioned, if the house was inherited or gifted, then only one spouse will end up as the owner of the property. Otherwise, you may divide it as you see fit with a mutual agreement, court order, or other form of legal action that will determine how this property will be allocated to the involved parties.
Sometimes neither party in the marriage is able to own the house, and when this is the case, selling to a private investment firm such as us is the obvious choice. Please contact us for more information on our process and how We Buy Houses in Colorado.
Sell and split up the profits
Before you take the standard route, and decide to contact a local real estate agent or cash buyer such as us, you may want to check out the condition of the property to see what type of shape it’s in. From that point, see if you can determine the $ value of repairs that it will take to get the property back to retail value. Once you have that number, then someone from our team will be able to let you know exactly how much we would be willing to pay for your home, and you will be able to use that quote to see if it’s a right fit for you and your partner. If not, no hard feelings and you move along, no harm, no foul.
Buy Out A Spouse
This is also another interesting option that couples can take. One spouse can buy out the other spouse, and then retain ownership over the home. These terms have to be agreed upon, but once a number has come into play, this is a great option that can oftentimes act as a quick solution to a seemingly overwhelming and insurmountable problem. If buying out your spouse isn’t a good option and you still need to sell quickly, then you still have the option to sell your house as-is in Colorado Springs.
When selling a home in divorce in Colorado with children involved, sometimes the judge will order what is called a “deferred sale”, which is simply a fancy term that means there will be a short delay in the sale of the house. The purpose of this extended delay is to reduce the negative impact of the divorce on the children, allowing the parents to own the house jointly for the time being while they get everything sorted out and figure out what their next steps are.
- How long have the kids lived in the property?
- Ages and grades of the children.
- Where is the nearest childcare center?
- Has the property been retrofitted to accommodate a disability of the child or parent?
- Emotional impacts on children – negative or positive.
- The location and employment of the parents and how that will affect their ability to support the children.
- The financial ability to find comparable and suitable housing.
- Tax consequences.
- The negative financial impact of a deferred sale.
- Any other relevant factors…
Going through divorce in Colorado can be extremely taxing on your central nervous system, but it doesn’t have to be more complicated than that. If you need to sell your house fast as is for cash in divorce then contact us immediately and we will run some estimates on the market value of your property, along with the repair costs, and then we will make you an all cash offer in as little as 24 hours. Thank You for taking the time to read this article, and we hope that you were able to get some useful information out of it to help you navigate this extremely difficult situation in your life.